Overseas Investment Act 2005

If you need more information about this Act, please contact the administering agency: The Treasury

What are overseas investments in sensitive New Zealand assets

12 What are overseas investments in sensitive land

(1)

An overseas investment in sensitive land is the acquisition by an overseas person, or an associate of an overseas person, of all or any of the following (a section 12 interest):

(a)

an estate or interest in land if—

(i)

the land that the estate or interest relates to is sensitive land under Part 1 of Schedule 1; and

(ii)

the estate or interest acquired is—

(A)

a freehold estate; or

(B)

if the land that the interest relates to is residential land, any interest in land (other than an exempted interest) for a total term (as calculated in accordance with Schedule 1A) of 3 years or more; or

(C)

if the land that the interest relates to is sensitive (but not residential) land, any interest in land (other than an exempted interest) for a total term (as calculated in accordance with Schedule 1A) of 10 years or more:

(b)

rights or interests in securities of a person (A) if A owns or controls (directly or indirectly) an estate or interest in land described in paragraph (a) and, as a result of the acquisition,—

(i)

the overseas person or the associate (either alone or together with its associates) has a more than 25% ownership or control interest in A; or

(ii)

the overseas person or the associate (either alone or together with its associates) has an increase in an existing more than 25% ownership or control interest in A that—

(A)

results in an ownership or control interest in A that equals or exceeds their ownership or control interest limit as set out in subsection (2); or

(B)

is in securities of A of a different class to the class in which their existing interest is held; or

(C)

gives the overseas person or the associate (either alone or together with its associates) any or more disproportionate access to or control of a strategically important business; or

(iii)

A becomes an overseas person in any of the following circumstances:

(A)

A is a body corporate that is a New Zealand listed issuer and meets the control test in section 7(3)(b):

(B)

A is a managed investment scheme that is a New Zealand listed issuer and meets the control test in section 7(4)(b):

(C)

A is not a New Zealand listed issuer.

(2)

The ownership or control interest limits are as follows:

(a)

if their existing ownership or control interest in A amounts to more than 25% but less than 50%, their ownership or control interest limit is 50%:

(b)

if their existing ownership or control interest in A amounts to 50% or more but less than 75%, their ownership or control interest limit is 75%:

(c)

if their existing ownership or control interest in A amounts to 75% or more, their ownership or control interest limit is 100%.

Section 12: replaced, on 5 July 2021, by section 6 of the Overseas Investment Amendment Act 2021 (2021 No 17).